1. The Compelling Argument for Item Unique Identification for Accurate Maintenance Priorities Jim Semerad, CDR, USN Mike Howard

2. Implementing RFID and IUID without Supply Chain Management System a Supply Chain Management System is a dead end. … no savings But you would have met DoD requirements! The trick is to find a way to implement RFID and IUID with a friendly SCM system. …Here we are using COLTS Supply Chain Management

3. COLTS Pick List Warehouse person picks parts Shipping Handheld Parts are brought to shipping and either IUID scanned or RFID Scanned as a group COLTS COLTS creates DD1149’s for each shipment Shipping (Planned)

4. Receiving Planned Receiving Warehouse person places received parts in inventory or maintenance COLTS Portal RFID Tag reader Handheld IUID or RFID handheld scan

5. Handhelds USFF Goal is to have one handheld that can perform multiple functions – Working with SSC-A, SEA 04, SEA 08, OSD – Currently five handhelds in the mix: CN3G CN3E CN4 CN4E CK3 – CN3E and G have been tested with AWN, QCTS, BCS, and IBS eFSM will be the next to test – Plan to be hardware non-specific 5 CN3gCN3eCN4CN4eCK 3

6. Shipyard and Maintenance Availabilities Harsh Environment – Ability to reprint label Maintenance actions may remove label – Unit can provide a copy of the 2D Data Matrix to the shop for re-attachment after repairs if required Added maintenance burden – Simple application of adhesive tag on clean surface – Minimal effort required

7. Hanging IUID Labels (Ship) 7 Authorizing OfficerLabel Being Hung

8. 8 Shipboard Marking

9. Continued Efforts RIVGRUONE – Deployed MFOM and IUID software 8 Mar 2010 – Deployed 5 CN3 handheld units with AWN MobileApp with QCTS interface – Training 8 – 9 Mar – Labeling effort 10 -11 Mar Labeled – 385 pieces of equipment over 2 days – Model version 3.2 released 17 Mar with improved APL and CDM Data 9

10. UID Candidates (Controlled Items: Class VII)  Disposal Date (2011)  OSD Criteria  OEM Mark; per DFARS 211.274-1 Pedigree Data Collection  Total Force Structure Management System  Marine Corps Equipment Readiness Information Tool  Program Management Office  OSD Criteria  GCSS-MC Requirements  Financial Data Engineering Analysis  UID Label Placement  UID Label Size, Material & Adhesive  Marking Instructions Mobile Marking Execution  Deployment of Mobile Marking Teams  Produce Labels  Mark and Scan Equipment Temporary Data Storage (TDS)  OSD Registry  GCSS- MC CAGESerial No. Part No.IAC UID Construct #2 17V4KAB72347HX32354 USMC IUID Legacy Marking Approach 10

11. SPAWARS Extremely High Frequency Satellite Program

12. F-16 APG-68 PROGRAMMABLE SIGNAL PROCESSOR MEMORY CARDS BUILD TO PRINT $14K - BUY $ 3K - REPAIR 500 HR MTBF SEVERE DMS PROBLEM PERFORMANCE $ 4K - BUY $ 0 - REPAIR 40,000 HR MTBF* NO DMS PROBLEM DOUBLE MEMORY *Estimated Investment = $5.5M Projected LCC Savings = $54.8M Projected LCC Savings = $54.8M ROI = 10.0 ROI = 10.0

13. FMS AIM-120 Inventory

14. Demo 2A: Baseline Current Inventory Process – Location: Raytheon Missile Systems, Tucson – Simulated bunker, with 29 missile containers (Stinger, AMRAAM, AIM- 9X, Paveway, Maverick, and SDB) – 6 personnel, fork truck – Timed staging, inventory, re-stow Total bunker 114 minutes Average 236 seconds per container… Demo 2B: UID Inventory – Scan UID container seal which crossed to container UID and missile UIDs. – Timed complete bunker inventory, start to finish 3 minutes, 50 seconds Average 8 seconds per container Will apply results to global universe of E-EUM missiles – (>35,000) by country

15. NDIA – Engine Manufacturer Why IUID With Automated Data Capture? 100% Reduction – Quality Errors 100% Reduction - Quality Escapes 100% Reduction - Quality Notifications 90% Reduction – Labor (cycle time) 40 - 50% Reduction – Product Development Span Time 30% Inventory Reduction

16. Significantly reduces risk of quality failure associated with identification escapes Eliminates legibility issues An enabler to a paperless system Improves speed and accuracy of data transfer No data transcript errors Internationally recognized Has the ABILITY to……... – Improve parts traceability – Reduce internal processing procedures – Capture accurate ‘As Built’ data – Check ‘Should Build’ data – Reduce Replenishment costs – Generate electronic log books Benefits of IUID and Automated Data Capture X

17. BEFORE Provided Courtesy of Rolls Royce Engines : Nat Russhard Oct 2005 An IUID Journey - Sample

18. Provided Courtesy of Lockheed Martin Clearwater Florida Bob Strawbridge May 2006 Transformation Began with BarCode 39 in 2000 40% Cycle Time Savings 30% Inventory Reduction 50% Reduction in Defects Initiated Transition to 2D Data Matrix Paper Cell - Manual Transcription, Identification Errors, Inventory Costs Solution - MRI With Automated Data Capture and Exchange

19. An IUID Journey - Sample Standardized Marking Method Eliminated 115 M characters manually recorded Eliminated 382 K transcription errors AFTER Automated Transcription of Part Identification Eliminated Part Identification Non- conformities Number of Parts: 870 Number of QN: 160 Number of Parts: 46 Number of QN: 25 Quality Notification Reduction Wrong marking method Operator manipulation Wrong Identification Marking illegible Wrong marking location Missing identification Marking out of limit Inspector stamp illegible / missing Others (Vendor, Telesis) BEFORE Provided Courtesy of Pratt & Whitney: Andy Jay Sept 2006

20. An MRI Success Journey ELITE – PLCS – DEX Development (Completed) Production Follow-on Projects with NAVAIR and ARMY AV IMMC Application of ISO0303AP239 and follow on Phases of the Electronic Logistics Information Trading Exchange (ELITE) to include UID data interface to the Registry & additional Navy, CCAD data exchange along with the current Sikorsky and Army DA2410 System current XML data exchange. Includes funding to NAVAIR and Redstone for organic support. Production Follow-on Projects with NAVAIR and ARMY AV IMMC POC: Charlie Lord, UID PMO Small Arms Marking at Anniston End to end integration of UID marking and AIS/AIT to Anniston Army Depot M-9 and M- 240 product lines to evaluate economics of service based approach. POC: Mr. Mike Friedman PMSoldier Standard Missile Marking and Serialized Item Management using UID as Enabler Integrate UID technology into Standard Missile’s Advanced maintenance Information System and perform real time SIM using UID technology POC: Mr. Craig MacDougall, NSWC Corona Gage UID Pilot Project Integrate USMC’s Gage PM initiative to apply UII to all gages with NSWC Coronas Advanced Management Information System for support gage SIM POC: Mr. Craig MacDougall, NSWC Corona

21. The Compelling Argument for Item Unique Identification for Accurate Maintenance Priorities Questions ?

22. IUID Large Scale Demo Installed, Not Live Live 22 ClassShipTrainingGo LiveRemarks SSNUSS NEW HAMPSHIREAug 09Awaiting Tag Test Results DDGUSS FORREST SHERMAN06 Apr 0913 Apr 09 FFGUSS HAWES09 Mar 0916 Mar 09 CGUSS VELLA GULFMay 0913 Jul 09 LPDUSS MESA VERDE16 Feb 0923 Feb 09 LPDUSS PONCE23 Mar 0901 Apr 09 SSBNUSS TENNESSEEMay 09Awaiting Tag Test Results PCUSS HURRICANE04 May 09 MCMUSS CHIEF11 May 0922 Jun 09 CVNUSS NIMITZ04 May 0906 May 09Awaiting new TYCOM nomination DDGUSS MASON06 Jul 09 LCSUSS INDEPENDENCE17 Dec 09 LCSUSS FREEDOM18 Jun 09 LHDUSS KEARSARGE06 Apr 0913 Apr 09 DDGUSS RUSSELL27 Apr 09 LSDUSS WHIDBEY ISLAND11 May 0915 Jun 09

23. IUID Report Findings Highlights 100% of 2D barcodes scanned were accepted as unique IUIDs by the National IUID Registry The CN3G scanner -100% accurate in reading and displaying 2D barcode data The IUID 2D printer used for this shipboard demonstration experienced multiple errors ~90% reliable A total of 1013 IUID 2D tags were hung – 30% of available equipment tagged – 100% inspected All in place, readable and in good to excellent condition. No tags were painted over, torn, or displayed signs of wear. 23

24. HMMWV: Cab, Differential (Front/Rear) RIVGRU One 24

25. RPB: Trailer, Boat, Engines RIVGRU One 25

26. IUID Benefits Increased ability to track turn in & rotable pool items Increased accuracy of shipboard equipment configuration documentation – Improves logistics support – Increased accuracy of the MFOM readiness reporting models Improved material readiness – Material history retained for life of component – Improved insight into the cause-and-effect relationship between resources and readiness Life cycle costs reduced by installing better suited components – Enables serialized item management (SIM) 26

27. Opportunistic Marking for Legacy Equipment Marking during normal routine operations – Example Maintenance both corrective and preventive Integrated Logistics Overhaul (storeroom cleanout) Lower cost – Common marking equipment/materials – Reduced training – Maintenance technician already performing a similar function Similar to isolating equipment Non-Invasive – Durable – Minimal process change required 27

28. Step 2. Pedigree Data Collection Step 3. Engineering Analysis Step 4. Marking Instruction (MI) Development Step 6. Equipment location and serial number validation 1.Collect Data 2.PM Approval 3.Deliver Data to Engineer & TDS Teams 1.Conduct Analysis 2.Determine mark location 3.Determine Label Type 4.Determine Adhesive Type 1.Develop MI 2.Review & Finalize 3.Upload MI to SharePoint 4.Conduct CM of MIs Step 5. Determine Equipment Quantity and Location 1.Query MERIT 2.Download equipment qty 3.Download units 4.Sort equipment according to owning unit and location 5.Develop equipment quantities/location file. 6.Procure blank labels. Step 7. Label Development & Printing 1.Provide general equipment information to MMTs. 2.MMTs inventory owning unit equipment to validate serial numbers, quantities, and locations. 1.Apply inventory information to logistical information. 2.QA applied to Data through TDS. 3.TDS reconciliation. 4.Use mobile marking cart to produce UII labels. 5.Sort labels according to locations and equipment types. Step 8. Mark Equipment per Marking Instruction 1.Validate serial number/NSN of new label against equipment. 2.Clean equipment surface. 3.Apply IUID label to equipment. Step 9. Scan Marked Equipment 1.Scan applied IUID Labels. 2. Seek and validate OEM Marks. 3. Download Scan reports/data. 4. Provide scan downloads to TDS. 5.TDS applies QA to data. Step 10. Upload to OSD Registry 1.Send TDS upload to OSD Registry. 2.Confirm Receipt. 3.OSD Registry Accepts & Approves. 4.Confirm OSD Registry Approval. 1.Disposal Date 2.OSD Criteria 3.OEM Marking Step 1. UII Candidacy Process USMC IUID Legacy Marking Process 28

29. IUID Candidacy Process Developed Primary focus of Mobile Marking Execution: Class VII (PEIs) USMC IUID Legacy Marking Candidacy 29

30. USMC IUID Pedigree Data Collection Process Flow 2. Consolidate and Parse by Program Office (Responsible Owning Program Manager). 3. Develop and present brief to PM confirming accuracy of ownership and requirement to mark. 4. Utilizing existing Automated Information Systems (AIS) – collect required pedigree data on assets confirmed to require marking. 5. Present data collected to PM to validate accuracy of data collected. 6. Forward approved list of assets with authorized data collected to Engineering Team for analysis and development of Marking Instructions. 7. Structure the data in accordance with the marking execution plan, i.e. Equipment location and type. 1. Validate and Scrub initial listings of assets to be marked in accordance with candidacy criteria. 8. Reconcile Discrepancy Reports. 30

31. USMC IUID Pedigree Data Engineering Process Flow 31

32. Input Operations  Accept IUID XML Data Program Managers Parallel or Previous Marking Efforts All On-going Legacy Marking Efforts within Marine Corps  Legacy Data Collection 58 Data Elements Signed off by HQMC  USMC Marking Effort Scan Reports Aligns Scans with Legacy Data Collected TDS Functionality  Based on OSD IUID Registry Business Use Cases Data Validation Rules Data Elements Required for Registration  Synchronizes Registration of IUID Legacy Data with OSD Registry  Ensures Uniqueness and Proper Construct of UIIs  Synchronizes UIIs with Legacy Data Output Operations  Matrix Reporting by TAMCN, NSN, Part Number, or Product Ownership  XML IUID Data Registration to OSD IUID Registry  USMC Legacy Marking Effort Performance The USMC Temporary Data Storage Will House Data Until Global Combat Support System – Marine Corps (GCSS-MC) Is Capable Of Performing This Function, At Which Time Data Will Be Migrated. USMC IUID Temporary Data Storage 32